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UNITED STATES DEPARTMENT OF AGRICULTURE 

BULLETIN No. 972 

Contribution from the Bureau of Animal Industry 

JOHN R. MOHLER, Chief JTU^'^-J't. 





Washington, D. C. 



September 19, 1921 



UNIT REQUIREMENTS FOR PRODUCING MARKET 
MILK IN EASTERN NEBRASKA. 



/^^ 



By J. Br Bain, Dairy Husbandman, G. E. Braun, Market Milk Specialist, Dairy 
Division, and E. A. Gannon, Cooperative Investigator, Nebraska Agricultural Experi- 
ment Station. 



CONTENTS. 



Page. 

Character and scope of the work 1 

Methods of obtaining data 2 

Influence of seasons on cost factors 2 

Description of herds 3 

Requirements for producing milk 3 

Credit for calves 6 

Credit for manure 7 

Requirements for keeping a bull 8 



Page. 

Factors involved in the production of milk . . 9 

Feed 9 

Pasture lo 

Labor lo 

Other costs u 

Percentage comparison of factors involved in 

milk production 12 

Average compared with bulk-line costs 13 

Monthly distribution of factors in milk pro- 
duction 15 

Summary 15 



CHARACTER AND SCOPE OF THE WORK. 

How many pounds of grain, hay, and silage do dairymen feed to 
produce 100 pounds of milk in different sections of the United States ? 
How many hours of labor do they expend? What other costs are 
involved? In 1915 the Bureau of Animal Industry, United States 
Department of Agriculture, began a series of studies on groups of 
dairy farms in different sections of the United States to obtain accu- 
rate information along these lines. 

The project with which this bulletin deals was organized near 
Omaha, Nebr., in cooperation with the department of dairy hus- 
bandry of the University of Nebraska. The study was begun in 
September, 1917, but was discontinued at the end of the first year 
because of the resignation of the field man who was conducting it.^ 

' C. H. Cook conducted the field work during the first year. 

Note.— The work was carried on in eastern Nebraska in cooperation with the Department of Dairy 
Husbandry, University of Nebraska, and applies especially to milk shipped from that section to the Omaha 
market. 

51550°— 21 



^P^ 



2 BULLETIlSr 972, U. S. DEPARTMENT OF AGPJCULTURE. 

In September, 1919, the work was resumed and records were obtained 
for the second year. Thus there was an interval of one year between 
the two years in which the studies were made. 

Although the figures obtained show what was required to produce 
milk for the Omaha market under the system of dairy management 
found in the section studied, and probably approximate the require- 
ments in similar sections, they, of course, do not apply to dairying 
in sections where different conditions and methods of management 
prevail. 

METHODS OF OBTAINING DATA. 

The figures reported are based on actual records obtained by 
regular monthly visits of 24 hours each to 8 farms for two entire 
years and to 22 other farms for one entire year. 

At the beginning and end of each year the field agent took an 
inventory of the dairy buildings, livestock, and equipment used in 
the care of the herd and its products. On his regular monthly visit 
at each farm the field agent, with watch in hand, noted and recorded 
the exact minute each labor operation on the dairy was begun and 
ended. xVn equally careful record was obtained of the kind, quantity, 
cost, and description of each feed fed. The quantity of milk sold 
and receipts each month were obtained. In addition the milk used 
by the proprietor and his help or fed to calves was measured or 
weighed on the monthly visit and used as a basis for determining 
the quantity kept on the farm during the month. 

The dairymen kept itemized accounts of expenses incurred between 
monthly visits and reported these items to the field agent. Monthly 
records were kept of the purchase or sale of cows, calves, hides, the 
cost of outside bull service, and other miscellaneous information. 
Accurate records of calves born and first-hand information on the 
condition and methods of handling manure were collected system- 
atically. 

The records of all the herds for each month made it possible to 
obtain representative data for each month, season, and year. Rec- 
ords were obtained the second year as a check on the first year's 
work and to increase the quantity of data for study. 

INFLUENCE OF SEASONS ON COST FACTORS. 

The results have been reported separately for the winter and 
summer seasons because the season of the year may have a marked 
influence on the principal factors of cost. The months from Novem- 
ber to April, inclusive, are considered as the winter season and the 
months from May to October, inclusive, as the summer season. 

The various tables are based upon figures obtained during the 
two-year study, and the weighted averages of these records were 



SEP23192I 

DOCUWEKTi. UiViiildN 



5 F e- 3 2^ 

hZ-g^/B- PRODUCING MARKET MILK IN EASTERN NEBRASKA. 3 

used wherever they would express the results more accurately. The 
weighted average was obtained by weighting each item according to 
its relative importance. 

DESCRIPTION OF HERDS. 

During the first year records were obtained on 21 herds contain- 
ing a total of 268.2 cows, with an average yearly production of 
5,806 pounds of milk testing 3.6 per cent butterfat. The second 
year's study included 226.5 cows in 17 herds, with an average yearly 
production of 5,843 pounds of milk and an average butterfat test of 
3.7 per cent. Though most of the herds consisted of grade Holstein 
cows, there were a number of herds in which the Jersey and Guernsey 
breeds were well represented. The size of the herd was determined 
by the number of cows in the herd for 12 ''cow-months." Cow- 
month is a term used to express the record of a cow in the herd for 
one month. 

During the first winter, 43.6 calves were dropped for each 100 
cows in the herds, and in summer the ratio was 42.5 calves. During 
the second winter 58.7 calves were born for each 100 cows kept, and 
in the second summer 44.2 calves were born. The total of 102.9 
calves for each 100 cows for the 3^ear may appear excessive, but it is 
due to the fact that out of the 276 cows in the herd sometime during 
the year 49 were heifers that entered the herd when they freshened. 
Though in some cases these cows were in the herd only a few months, 
the herd was credited with their calves. Thus the herd received 
credit for the whole calf, whereas the dam was in the herd only a part 
of the year and was counted only as a proportionate fraction of 1. 
In this way the percentage of calves was materially affected. Com- 
bining the results for the two years, we have a total of 494.7 cows 
giving birth to 463 calves; or for every 100 cows there were 93.6 
calves, 43 of these coming in the summer season and 50.6 in the winter 
season. 

REQUIREMENTS FOR PRODUCING MILK. 

The feed requirements are expressed in pounds, and labor in hours, 
in order to eliminate the effect of fluctuating prices. This method of 
presenting the facts makes it possible to use the figures for some 
time to come. 

During the war many of the farmers in this section concentrated 
their efforts on raising grain, which forced dairying to occupy a second- 
ary place. The high price of concentrates caused the dairymen to 
feed less grain, with the result that the production of the cows was 
less than it would have been under heavier feeding. 

This fact is brought out by the record of a cow named ''Prohibi- 
tion." This cow was so named because she was always dry; at 



4 BULLETIN 972, U, S. DEPARTMENT OF AGRICULTURE. 

least it appeared that way to her owner, since she would give milk 
for only five or six months and then go dry until the next freshening. 
When her owner found out from the first year's records that she had 
been dry for six months and had produced only 3,351 pounds of 
milk during the year, he decided that she should go to the stock- 
yards at Omaha when she went dry again. So, as soon as the cow 
freshened, the owner began to feed her a little grain to keep her in 
condition so that it would not take so long to fatten her for beef 
after she went dry. But Prohibition did not go dry. With that 
extra grain she kept milking month after month, and at the end of 
the year she had 7,043 pounds of milk to her credit. The owner did 
not sell her, but he did change her name. 




Fig. 1. — A barn typical of those on the farms studied. 

A study of the original figures shows that grain was not fed so 
economically as it could have been. During the first winter one herd 
received only 3.8 pounds of grain for each 100 pounds of milk pro- 
duced, while another herd received 82.5 pounds. Such a wide range 
in the quantity of concentrates fed was probably due to the fact that 
the dairy business is relatively new in this section and the most 
economical methods have not yet been generally adopted by the 
dairymen. Some dairymen in this section, however, are already 
following profitable methods of feeding and are giving their herds 
better care and improving them by breeding and selection. There 
was also a wide variation between the two winters and between the 
two summers in the quantity of grain and roughage fed. The wide 



PRODUCING MARKET MILK IN EASTERN NEBRASKA. 5 

difference was accentuated by the fact that an entire year intervenes 
between the two years during which the records were taken. 

The amount of human and horse labor was less than it would have 
been had the dairymen hauled their own milk. For the most part 
motor trucks were used to collect the milk and haul it to the Omaha 
market. The charge for this hauling appears in Tables 1 and 2 under 
the item ''Cash hauling of milk." The item ''Motor-truck charge" 
was payment for the service of a motor truck owned by a dairyman 
who hauled his own milk. 

The cost of keeping a bull is expressed in dollars in Tables 1 and 2. 
In Table 5 the requirements for keeping a bull for one year are stated 
in units so that current prices for feed and labor may be applied. 

The comparative size and importance of the various cash charges 
are shown in the lower section of Tables 1 and 2. For convenience 
the requirements for producing 100 pounds of milk and also for keep- 
ing a cow one year are tabulated separately. 

Table 1 . — Units required, except charge for management, for producing 100 pounds of 
milk in winter and in summer. 



Item. 


Winter. 


Summa- 
ry of t wo 
winters. 


Summer. 


Summa- 


1917-18 


1919-20 


1918 


1920 


summers. 


Feed: 

Purchased concentrates pounds. . 

Home-grown grains do 


7.0 
37.9 


0.9 
35.4 


4.4 
36.8 


1.4 

9.1 


0.9 
10.7 


1.2 
9.8 




44.9 


36.3 


41.2 


10.5 


11.6 


11.0 








$0,007 


$0. 028 


$0. 016 


$0,001 


$0,007 


$0,004 






Noncommercial roughage. . . .pounds. . 

Commercial carbohydrate hay. .do 

Commercial legume hay do 


37.3 

7.3 

29.1 


2.3 

4.8 

116.8 


22.3 
6.3 
66.7 


23.1 

1.8 

47.2 


1.7 
3.1 
24.9 


12.6 

2.4 

36.2 




73.7 


123.9 


95.3 


72.1 


29.7 


51 2 






Silage and other succulent roughage 

pounds . . 

Pasture 


104.9 

SO. 138 

11.0 


78.5 

$0,069 

11.1 


93.6 

$0. 108 

11.1 


40.2 

$0,608 

.4 


18.0 
$0,699 
.6 


29.3 
$0. 653 


Bedding pounds . . 


.5 


Labor: 

Human hours. . 

Horse do — 


2.1 
.03 


1.9 
.10 


2.0 
.06 


2.2 
.12 


1.6 
.03 


1.9 
.08 


other costs: 


$0,160 
.084 

.037 
.119 
.098 
.001 
.173 


$0,222 
.111 

.024 
.153 

.238 


$0. 186 
.0% 

.032 
.134 

.158 
.001 
.181 


$0,185 
.097 

.043 
.138 
.102 
.005 
.167 


$0,199 
.100 

.022 
.137 
.145 
.020 

.254 


$0. 192 


Equipment charges and dairy supplies. 
Herd charges: Ta.xes, insurance, veteri- 
nary service, medicines, and disin- 


.099 
.033 




.137 




.123 




.012 


Cash hauling of milk 


.190 


.209 






Total other costs, except depreciar 


.672 
.122 


.938 
.027 


.788 
.081 


.737 
.141 


.877 
.024 


.805 




.084 






Total other costs 


$0. 794 


$0,965 


$0. 869 


$0,878 


$0. 901 


$0. 889 







The summaries of the "ni t requirements by seasons are printed in bold-face t3rpe. 



BULLETIN 972, U. S. DEPARTMENT OF AGRICULTURE, 



Table 2. — Quantities of various classes of feeds required and expenses incurred for keeping 
a cow during each season and for entire year. 



Item. 



Number of cows 

Average production "_ ............. .pounds! 

Feed: 

Purchased do 

Home-grown grains .V. .\]]\\ .do.]] 

Total concentrates do 

Hauling and grinding concentrates 



Noncommercial roughage pounds. 

Commercial carbohydrate hay ' do 

Commercial legume hay .' ..".........'."..... .do !.! ! 

Total dry roughage do 

Silage and other succulent roughage do 

Pasture. 



Bedding .'. .".■.■.■.■.■.■.'.".".".■.".pounds '. 



Labor: 

H>™an hours. 

do. 



Winter. 



Horse . 



Other costs: 

Building charges 

Equipment charges and dairy supplies. [..................[.[ 

Herd charges: Ta.xes, insurance, veterinary service, medicines, and 

disinfectants 

Interest on cow investment 

Cost of keeping bull 

Motor-truck charge ......."!!. 

Cash hauling of milk 



Total other costs except depreciation on eowf 
Depreciation on cows 



Total other costs. 



497.1 
2,938 



129 
1,082 



1,211 

$0.48 



656 

183 

1,959 



2,798 



2,749 

$3.18 

325 



58. 2 
1.9 



Summer. 



Entire 
year. 



492.3 

2, SS5 



34 
284 



318 



494.7 
5,823 



163 
1,366 



363 

69 

1,045 



1,477 



844 

$18. 83 

15 



55.4 
2.3 



$5.48 
2.81 



3.93 

4.64 

.01 

5.31 



23.11 
2.38 



$5.53 

2.84 

.94 
3.96 
3.55 

.36 
6.06 



23.24 
2.40 



25.64 



1, 529 
$0.60 



1,019 

252 

3,004 



3,593 

$22. 01 

340 



113.6 
3.2 



$11.01 
5.65 

1.87 

7.89 

8.19 

.37 

11.37 



46.35 

4.78 



51.13 



CREDIT FOR CALVES. 

The large credit of 1.02 calves per cow during the second year, as 
shown in Table 3, was due to many cows entering the herd at freshen- 
ing time and remaining only a fractional part of the year. The 
effect of war prices is reflected in the larger average value of calves 
during the second year. 

Table 3.— Total credit for calves produced, by years and by seasons. 



Item, 



Number of calves 

Total value of calves 

Average value of calves 

Calves per cow 

Credit per cow 

Credit per 100 pounds of milk . 



Credit by years. 



1917-18 



231 

$1, 752. 59 

7. 59 

0. 86 of 1 calf. 

$6.53 

0.01 of 1 calf. 



1919-20 



232 

$4, 383. 50 

18.89 

1.02 calves. 

$19. 35 

0.02 of 1 calf. 



Credit by season-;. 



Both winters. Both summers. 



250 


213 


$3,600.45 


$2,535.61 


14.40 


11.90 


> 0.5 of 1 calf. 


1 0.43 of 1 calf. 


1 $7. 24 


1 $5. 15 


0.02 of 1 calf. 


0.01 of 1 calf. 



1 These figures are the averages for the respective seasons. 



PRODUCING MARKET MILK IN EASTERN NEBRASKA, 7 

CREDIT FOR MANURE. 

The method used in these studies for obtaining the value of manure 
takes into consideration the fertiUzing constituents of the feeds. 
The proportion of the fertiUzing constituents of the feed that was 
returned in the manure was obtained from standard tables. A cow 
digesting her feed utilizes on the average approximately 25 per cent 
of the nitrogen, 30 per cent of the phosphorus, and 15 per cent of 
the potash contained in the feed. It is evident, then, that 75 per 
cent of the nitrogen, 70 per cent of the phosphorus, and 85 per cent 
of the potash is voided in urine or in the solid portion of the manure. 
The urine voided by a cow is more valuable than the solid manure 
as a source of nitrogen and potash. 

Table 4. — Manure and fertilizing constituents credited to the herds during the two winters 

and the two summers. 



Item. 


Winter. 


Summer. 


1917-18 


1919-20 


Average. 


1918 


1919 


Average. 


Total manure saved tons. . 

Manure per cow pounds.. 

Manure credited per 100 pounds of milk, 


979.1 

7,062 

234 


801.1 
7,289 

256 


890.1 
7,162 

244 


68.9 
532 

19 


75.5 
647 

22 


72.2 

587 

20 








Winter average. 


Summer average. 




Nitro- 
gen. 


Phos- 
phoric 
acid. 


Potash. 


Nitro- 
gen. 


Phos- 
phoric 
acid. 


Potash. 


Fertilizing constituents in manure, 
pounds 


8,426 
».9 


2,599 
10.5 


8,753 
35.2 


683 
2.8 


210 
0.9 


710 


Credit per cow pounds. . 


3.0 



The small credit for manure (Table 4) is due to a combination of 
factors. During the summer the cows are in the barn just long 
enough to be milked. Only during very cold or stormy days in 
winter are the cows kept in the barn. On other days they are per- 
mitted to run in the stalk fields, where they pick up a little corn and 
such roughage as they can find. On many farms a considerable 
quantity of the manure voided in the barns, especially the liquid 
portion, was lost through leaky gutters. When it was stored in 
the yards before being spread on the fields a large percentage of the 
fertilizing value was lost through seepage and exposure to the weather. 

Only the manure that was dropped directly on the stalk fields, or 
was saved, or could have been saved by using reasonable care with 
the equipment available, was credited to the cows. The quantity 
of manure dropped was approximated by keeping a record of the 
time the cows were actually in the barn. This made it possible to 



8 BULLETIN 972, U. S. DEPARTMENT OF AGRICULTURE. 

figure the weight of the manure voided in the barn, for, according 
to the best authorities, a 1,000-pound cow produces 13 tons of manure 
in a year, or 6^ tons in six months. Full credit was allowed for 
manure dropped in the stalk fields, but manure dropped in perma- 
nent pastures was not credited to the herds. If a credit had been 
given, an additional charge for fertilizer would have been necessary 
and would have increased the pasture rent to the herd. 

A ton of average manure saved on the farms studied, accordmg to 
the methods used for determining it, was estimated to contain the 
following fertilizing constituents: 

Pounds. 

Nitrogen — 9.5 

Phosphoric acid 2. 9 

Potash 9. 8 

When the nitrogen in commercial fertilizers was worth 24 cents, 
phosphoric acid 10 cents, and potash 11^ cents a pound, the fertiliz- 
ing value of these ingredients in a ton of manure would have been 
$3.70. 

REQUIREMENTS FOR KEEPING A BULL. 

On most of the farms the bulls were allowed to run with the cows 
both in summer and in winter. As shown in Table 5, the bulls 
received very little grain. 

Table 5. — Eequirements for keeping a hull, by seasons, based on averages obtained from 

the equivaletit of 29.5 bulls. 



Item. 


Winter. 


Summer. 


Entire 
year. 


Feed: 

Purchased concentrates 

Home-gro^\^l grain 


pounds.. 

do 


25 
644 


10 
144 


35 

788 


Total concentrates 


669 


154 


823 




;... pounds. . 

do.... 

do.. 

do.... 

pounds.. 

do 




Noncommercial roughage 

Commercial carbohydrate hay 

Commercial legume" hay ' 


501 

266 

1,757 


386 

75 

764 


887 

341 

2,521 


Total dry roughage 


2,524 


1,225 


3,749 


Succulent roughage 

Bedding 


2,185 
129 

$2.98 


841 

6 

$17.41 


3,026 
135 


Pasture 


$20. 39 




hours.. 

do 




Human labor 

Horse labor 


10.5 


5.6 
.3 


16.1 
.3 










other costs: 

Interest on bull investment 


$6.30 
6.07 
12.77 


$6.34 
6.11 
12.86 


$12. 64 


Bull's share of buildings 


12.18 


Depreciation on bull.. i 


25.63 








Total other costs 


$25. 14 


$25. 31 


$50. 45 







During the second year one of the bulls died and five were sold for 
beef at prices far below their purebred values. These facts account 
largely for the depreciation of $25.63 per bull per year. 



PRODUCING MARKET MILK IN EASTERN NEBRASKA. 9 

FACTORS INVOLVED IN THE PRODUCTION OF MILK. 

FEED. 

Concentrates, in the meaning of this study, are grains and their 
by-products prepared for feeding. 

Home-grown grains are concentrates grown on the farm or in the 
locahty where fed. * 

Dry roughage includes various hays and other bulky feeds. Dry 
roughage is subdivided into the three following classes : 

Noncommercial dry roughage applies to coarse feeds, such as corn 
stover and velvet-grass hay, for which price quotations are not given 




I'lU 'Z. iiaiii and ,,ilu.; uu uae of the farms studied. 

in the trade papers. Hay or otlier dry roughage so foul with weeds 
or so damaged in curing as not to be readily salable is also classified 
under this heading. 

Commercial legume hay includes alfalfa, clover, cowpea, soy-bean, 
and other marketable legume hays, when pure, or when so slightly 
mixed with grasses as not materially to affect the protein content. 

Commercial carbohydrate hay refers to all marketable hays except 
those classified as legume hay. 

Succulent roughage consists of mangels, potatoes, silage, and soiling 
crops. 

The quantities of the various feeds used were obtained from actual 
weights made by the field agent on his regular monthly visit to each 
farm. 



10 BULLETIN 972, IT. S. DEPARTMENT OF AGPJCULTURE. 

Purchased concentrates were charged at the prices paid. The 
home-grown grains were given the farm price, plus extra charges for 
hauhng and grinding, when necessary. The value of silage was based 
upon the value of the grain and roughage in it, less the difference 
between the cost of harvesting the corn and the cost of putting it 
into the silo. 

PASTURE. 

The rent on permanent pasture was obtained by adding the inter- 
est and taxes on the land and the upkeep and repairs on fences. 
Where meadows or stalk fields were pastured, the rent was based 
upon the prevailing rate in the section, or upon a fair rent based upon 
the quantity of feed obtained from the field. The rather common 
practice of allowing the stock to roam at will over fields after the 
crops had been harvested made it impracticable to express the pas- 
ture charge on an acreage basis. 

In normal years pastures usually are poor from the last of July 
until September. During the war the high price of grain tempted 
many of the farmers to plow up pasture land and sow it to grain, 
so that the acreage in pastures was greatly reduced. 

Sweet clover furnishes good pasture in this section. On one farm 
20 acres were sowed to sweet clover, with oats as a nurse crop. The 
oats yielded 32 bushels an acre, and 15 head of cattle and 8 horses 
were pastured for two months after the oats were cut. The follow- 
ing summer the sweet-clover pasture carried 18 head of cattle and 8 
horses from May to September, inclusive. 

On another farm ISj acres of sweet-clover pasture carried 21 cows, 
6 calves, and 4 horses from June 1 to September 15. The grazing 
could have begun a month earlier with beneficial results to the pas- 
ture, as the plants were too large and coarse by June 1. 

LABOR. 

Grain growing is the principal type of farming in this section, and 
on many farms in summer the herds were cared for and milked late, 
after the men had done a hard day's work in the fields. Table 6 
shows that in summer nearly four-fifths of the work about the dairy 
was performed by the manager or by the family help. In winter 
nearly three-fourths of it was performed by the manager with the 
help of his family. 

In all items involving a charge for labor, expressed in dollars and 
cents, the cost of management has not been included. When the 
manager worked, his time was charged up at the same price that he 
would have had to pay if he had hired a man of equal skill to take 
his place. The reason for not making a definite charge for manage- 
ment is because no satisfactory basis has been found upon which to 
make this charge. 



PRODITCING MARKET MILK IN EASTERN NEBRASKA. 



11 



Table G.- — Percentage of labor performed and hours per 100 pounds of milk by each class 

of help. 





Winter. 


Summer. 


Class of labor. 


Distribution of work per- 
formed. 


Labor 
per 100 
pounds 
of milk. 


Distribution of work per- 
formed. 


Labor 
per 100 
pounds 
of milk. 




1917-18 


1919-20 


Average. 


Average. 


1918 


1920 


Average. 


Average. 


Managers 


Per cent. 
50.9 
26.7 


Per cent. 
59.1 
26.1 


Per cent. 
54.3 
26.4 


Hours. 
1.07 
.52 


Per cent. 
52.3 
17.9 


Per cent. 
49.4 

25.8 


Per cent. 
51.1 
21.1 


Hours. 
98 


Hired men 


41 






Total man labor 

Women 


77.6 
12.1 
10.3 


85.2 

14.1 

.7 


80.7 
12.9 
6.4 


1.59 
.26 
.13 


70.2 

14. 

15.6 


75.2 

20.6 

4.2 


72.2 
16.8 
11.0 


L39 
32 


Boys and girls 


21 






Total human labor 


100.0 


100.0 


100.0 


1.98 


100.0 


100.0 


100.0 


1.92 



As i.s seen in Table 7, work connected with the dairy is divided 
into three groups — production, handhng, and hauUng to the shipping 
phitform. Production includes feeding, milking, and the general 
care of the herd. Handling comprises such items as washing the 
utensils, cooling the milk, and getting it ready for hauling. On one 
farm hauling to the market was done by the owTier himself; on the 
others it was done by a motor truck which called at the dairies and 
picked up the milk which had been hauled short distances to the road 
on the route of the truck. The item of hauling in Table 7 does not 
include the time taken by the motor trucks, as it was paid for in cash. 

Table 7. — Human labor used in producing, handling, and hauling 100 pounds of milk 

to the shipping platform. 



ICind of work. 


Winter. 


Two 


Summer. 


Two 


1917-18 1 1919-20 

1 


winters. 


1918 


1920 


summers. 


Production 

Handling 

Hauling 


Hours . 
1.S9 
.13 
.03 


Per a. 

92.3 

6.3 

1.4 


Hours . 
1.71 
.13 
.04 


Perct. 

90.8 

6.9 

2.3 


Hours.] Perct. 
1.81 91.7 
.13 6. 6 
.04 1. 7 


Hours . 
1.93 
.27 
.03 


Per ct. 

86.3 

12.3 

1.4 


Hours. 
1.41 
.15 
.04 


Per ct. 

88.2 
9.2 
2.6 


Hours. 
1.67 
.21 
.04 


Perct. 

87.1 

11.0 

1.9 


Total...'. 


2.05 100.0 


1.88 


100.0 


1.98 


100.0 


2.23 


100.0 


1.60 


100.0 


1.92 


100.0 



OTHER COSTS. 

Under the heading of "other costs" are grouped miscellaneous 
costs, such as interest, taxes, insurance, and depreciation, on the 
herd, buildings, and equipment, also the cost of keeping the bull, 
and similar items. 

BUILDINGS. 

The investment in buildings, including silos, averaged S85.16 per 
cow per year. The depreciation per year was based upon their 
remaining years of usefulness. Insurance charges were taken from 



12 



BULLETIN 972, U. S. DEPARTMENT OF AGRICULTURE. 



the premium receipts of the insurance companies. The cost for 
upkeep and repairs was obtained by keeping an actual record of 
expenditures during the year. The footing of the first column of 
Table 8 shows that the total of the costs against buildings amounted 
to 13.8 per cent of the capital invested in buildings, and the other 
totals show corresponding percentage relationships. 

Table 8. — Per cent relationship between "other costs^' and capital invested. 



Item. 



Buildings. 



Capital invested $421, 127. 96 

Capita) invested per cow ) 85. 16 



Interest , 

Depreciation 

Taxes 

Insurance , 

Upkeep and repairs , 

Milking-machin e repairs . 

Total 



Per cent. 
6.0 
3.4 
.7 
.4 
3.3 



Equip- 
ment. 



$9, S05.62 
19.82 

Per cent. 
5.9 
15.2 



22.9 



$66, 501. 50 
134.43 

Per cent. 

5.9 

3.6 

.6 

.3 



Total. 



S118, 435. 08 
239. 41 

Per cent. 



Id.'. 



12.6 



EQUIPMENT. 



A monthly record of repairs and renewals of equipment was made. 
The amounts spent for dairy supplies were also recorded month by 
month and amounted to $1.12 per cow per year. 



The cows had an average inventory value of $134.43. Purebred 
cows were inventoried at fair prices for grade animals of similar 
producing ability, and the calves dropped by the purebred cows 
were inventoried at corresponding grade values. Inventories were 
taken at the beginning and end of each year. The value of cows 
which entered the herd during the year was added to the first inven- 
tory, and the receipts for cows or hides sold during the year were 
added to the second inventory before determining the depreciation 
or increase in value of the herd for the year. 

The feed, labor, and ''other costs" of keeping the herd sires were 
kept separate, so they would be available for study. Interest was 
charged at 6 per cent, the prevailing rate in the section. Records 
were kept of the actual amounts of money spent during the year for 
veterinary services, medicines, and disinfectants. These expend- 
itures amounted to 60 cents per cow per year. 

PERCENTAGE COMPARISON OF FACTORS INVOLVED IN MILK PRODUC- 

TION. 

How much more did it cost to produce milk in winter than in 
summer? What caused the variation in cost? Did the credit for 
calves and manure and the debit for "other costs" balance each 
other? Table 9 answers these questions. 



PRODUCIISTG MARKET MILK IN EASTER X NEBRASKA. 



13 



Table 9. — Percentage of the total costs represented by feed, labor, and other costs, by 

seasons. 



Cost item. 


Winter. 


Summer. 


Entire 
year. 


Feed and bedding 


Per cent. 

.■?3. i 

1.7 


Per cent. 
10.9 
10.0 


Per cent. 
44. 3 




11.7 






Feed, bedding, and pasture cost 


3.5. 1 
8.9 
12.3 


20. 9 
7.9 
12.3 


56.0 


Labor 


16.8 


Other costs except herd inventory variation 


24.6 






Total cost except herd inventory variation 


56.3 
1.3 


11.1 
1.3 


97.4 


Depreciation on herd 


2.6 






Total cost of production 


.57.6 


42.4 


100.0 






Credits: 

Calves 


3.6 
6.9 


2.6 
.5 


6.2 




7.4 






Total credits 


10.5 


3.1 


13.6 







The first two columns of Table 9 show that the difference of 15.2 
per cent in the cost of producing milk in winter and in summer was 
due principally to the difference in cost of the feed, bedding, and 
pasture. 

The high prices received for cows sold tended to reduce the depre- 
ciation charge. The depreciation charge is reported separately, 
so that the amount and its effect on the total cost can be seen. 

AVERAGE COMPARED WITH BULK-LINE COSTS. 

During the last few years attempts have been made to use the 
average cost of production as a basis for determining the selling 
price of milk. Where the average cost basis is recommended it is 
evident that practically all those producers whose costs are above 
the average will find their profits small even if they are so fortunate 
as not to suffer an actual loss. This will tend to discourage produc- 
tion and reduce the available supply. 

It is to be expected that the cost of producing 100 pounds of milk 
will vary in different dairies and in the same dairy from season to 
season. The varying costs per 100 pounds of milk have been tab- 
ulated in ascending order in Table 10. 

In the scale of costs there is a line below which the greater quantity ' 
of the milk is produced. This is known as the bulk line. The 
determination of the limits of the bulk-line cost depends in part 
upon the supply needed. However, it is usually set at some point 
which includes from 80 to 90 per cent of the total supply. An ex- 
amination of the second, fourth, and fifth columns of each season in 
Table 10 shows one or more points where the bulk line could be 
located. It wall be noted that during the winter of 1919-20, 82.5 
per cent of the milk w^as produced at a cost of $3.45 or less per 
hundred. At $3.51 or less 86.7 per cent of the total supply of 
milk w^as produced. Thus 4.2 per cent more milk was obtained at an 
increased cost of 6 cents per hundred. Then there was a sharp 



14 



BULLETIN 972, U. S. DEPARTMENT OF AGRICULTURE. 



advance to $3.85 in the cost of production with only a small quantity 
of milk, 6.5 per cent, produced. If the price of milk is based on the 
cost of production, one should ask whether 6.5 per cent more milk is 
worth an increase of 34 cents (S3. 85 minus $3.51) per 100 pounds. 
In this range of costs one logical location for the bulk line is at $3.51^ 
since this figure includes 86.7 per cent of the total quantity of milk 
produced. It is not logical to locate the bulk line at $3.85, since 
there is an increase of 34 cents in cost and only 6.5 per cent addi- 
tional milk supplied. When all the present supply is needed, the 
supply will be maintained if the price for milk is sufficiently above 
the bulk-line cost to encourage increased production by the low- 
cost producers. 

Table 10. — Net cost, quantity, and percentage of milk produced by each herd during two 

winters and two summers. 



Winter, 1917-18. 


Winter, 1919-20. 




Cost per 

100 
pounds. 


Milk produced. 




Cost per 

100 
pounds. 


Milk produced. 


Herd 
No. 


Quantity. 


Proportion 
of total. 


Cumula- 
tive pro- 
portion. 


Herd 

No. 


Quantity. 


Proportion 
of total. 


Cumula- 
tive pro- 
portion. 






Pounds. 


Per cent. 


Per cent. 






Pound.^. 


Per cent. 


Per cent. 


423 


S2.01 


10, 490 


1.2 


1.2 


433 


$2.21 


40, .301 


6.4 


6.4 


402 


2.02 


187, 691 


22.5 


23.7 


426 


2.27 


35, 839 


5.7 


12.1 


417 


2.08 


64, 061 


7.6 


31.3 


425 


2.59 


15,7.54 


2.5 


14.6 


421 


2.51 


26, 600 


3.2 


34.5 


431 


2.60 


37,052 


5.9 


20.5 


420 


2.62 


30, 424 


3.6 


38.1 


417 


2.69 


57, 972 


9.3 


29.8 




12.73 
2.79 








432 
427 


2.70 

2.78 


35, 891 
41,388 


5.7 
6.6 


3.5.5 


"lib 


44,' 843' 


5.'4' 


4.3.' .5' 


42.1 


410 


2.85 


59, 013 


7.0 


50.5 


420 


3.04 


33, 790 


5.4 


47.5 




2 2.86 

2.88 








434 

403 


3.10 
.3.15 


65, 751 
18,913 


10.5 
3.0 


58.0 


"464" 


i9,'26i' 


2.'3' 


52.'s' 


61.0 


403 


2.94 


14, 181 


1.7 


54.5 




2 3. 18 








408 


2.98 


72, 048 


8.6 


63.1 


"'464' 


.3.21 


9,'i8i' 


i.'s' 


' 62.'5 


418 


.3.01 


30, 814 


3.7 


66.8 


428 


3.41 


36, 639 


5.9 


68.4 


409 


3.07 


26,004 


3.1 


69.9 


429 


.3. 45 


87, 840 


14.1 


82.5 


416 


3.19 


27, 425 


3.3 


7.3.2 




13.47 








407 


3.26 


23,658 


2.8 


76.0 


"409' 


3.51 


25,' 996' 


4.'2' 


86.'7 


411 


3.41 


22, 706 


2.7 


78.7 


416 


3.85 


40,428 


6.5 


93.2 


406 


3.58 


33,617 


4.0 


82.7 


405 


4.39 


19, 083 


3.1 


96.3 


413 


3.64 


27,045 


3.2 


85.9 


410 


6.96 


23, 362 


3.7 


100.0 


412 


3.78 


49,084 


5.9 


91.8 












405 


4.12 


23, 741 


2.8 


94.6 












419 


4.28 


32,655 


3.9 


98.5 












422 


4.62 


9,937 


1.5 


100.0 
















Summer, 


1918. 




Summer, 1920. 


423 


$1.15 


29,663 


1.1 


4.1 


427 


$1.62 


48,401 


6.9 


6.9 


403 


1.50 


37,931 


5.2 


9.3 


429 


1.76 


75, 467 


10.8 


17.7 


421 


1.80 


35,688 


4.9 


14.2 


404 


1.77 


27,932 


4.0 


21.7 


416 


2.13 


40, 062 


5. 5 


19.7 


425 


1.80 


37,494 


5.4 


27.1 


410 


2.24 


40, 671 


5.6 


25.3 


416 


1.83 


55,0.53 


7.9 


35.0 


415 


2.26 


32, 944 


4.6 


29.9 


420 


1.91 


40,468 


5.8 


40.8 


408 


2.41 


72, 138 


10.0 


39.9 


434 


2.20 


87, 176 


12.5 


53.3 


407 


2.43 


30,531 


4.2 


44.1 


403 


2.26 


26,907 


3.9 


57.2 


404 


2.45 

12.59 

2.66 


21, 366 


3.0 


47.1 


'"•426' 
417 


2 2.38 
2.47 
2.69 










29,' 098' 

56,058 


4.'2' 

8.0 


6i.'4 


■ "469' 


22,' 526' 


3.'i' 


56."2' 


69.4 




2 2.74 
2.88 










12.70 
2.80 








"4O6' 


26.' 539' 


3.'7" 


53.'9' 


"'433' 


45,' 657' 


e.'i' 


75.'8 


411 


2.90 


19,335 


2.7 


56.6 


409 


2.90 


29, 688 


4.3 


80.1 


417 


3.02 


49, 170 


6.8 


63.4 


432 


2.95 


28, 937 


4.1 


84.2 


402 


3.18 


59, 736 


8.3 


71.7 


431 


3.26 


24, 335 


3.5 


87.7 


422 


3.35 


12, 975 


1.8 


73.5 


410 


3.38 


25,568 


3.7 


91.4 


412 


3.36 


59,565 


8.2 


81.7 


428 


3.52 


40,744 


5.8 


97.2 


420 


3.37 


26,434 


3.7 


85.4 


405 


3.95 


19, 814 


2.8 


100.0 


418 


3. .50 


30,042 


4.2 


89.6 












419 


3. 78 


33, 636 


4.7 


94 3 












413 


4.16 


18, 509 


2.6 


95.9 












405 


4.35 


22, 456 


3.1 


100.0 













1 Average income from milk. 



2 Average cost. 



PRODUCING MARKET MILK IN EASTERN NEBRASKA, 



15 



MONTHLY DISTRIBUTION OF FACTORS IN MILK PRODUCTION. 

During the last few 3^ears many dairymen have requested an anal- 
ysis of the cost of producing milk on a monthly basis. Such an 
analysis is given in Table 11. 

Table 11.- — Distribution, by months, of milk prices, milk produced, feed cost, and labor 

required. 





Income 
per 100 
poimds 
cf milk. 


Income 
from 
milk 

sold and 
used. 


Milk, 

sold and 

used. 


Feed, 
pasture, 
and bed- 
ding 
cost. 


Feed, 
pasture, 
and bed- 
ding cost 

minus 
manure 

and 
bedding 

credit. 


Human labor. 


Horse labor. 


Month and season . 


Per 100 
pounds 
of milk. 


Per cow. 


Per 100 
pounds 
of milk. 


Per cow. 


1917-18. 
May. 


$2. 39 
2.31 
2.43 
2.64 
2.88 
3.27 


Per cent. 
9.2 
8.1 
7.4 
6.9 
6.8 
6.6 


Per cent. 
10.2 
9.4 

8.2 
6.9 
6.3 

5.4 


Per cent. 
6.8 
6.0 
6.3 
5.6 
7.5 
5.9 


Per cent. 
6.7 
5.9 
6.1 
5.5 
7.4 
5.7 


Hours. 
2.0 
2.1 
2.4 
2.5 
2.3 
2.4 


Hours. 

11.3 

11.2 

11.6^ 

10.1 
8.7 
8.9 


Hours. 
0.138 
.Oil 
.056 
.313 
.137 
.090 


Hours, 
0.79 


June 


.23 


July 


.27 


August 


1.28 


September 


.52 


October 


.34 






Summer 


2.59 


45.0 


46.4 


38.1 


37. 4 2. 2 


10.4 


.124 


.58 


November 


2.78 
2.87 
2.80 
2.80 
2.72 
2.48 


7.7 
8.7 
9.7 
9.0 
10.4 
9.5 


7.4 
8.0 
9.2 
8.6 
10.2 
10.2 


7.8 
10.8 
12.1 
11.1 
11.3 

8.8 


5.9 
8.9 
10.1 
9.1 
9.4 
6.8 


2.1 
2.2 
2.1 
2.1 
1.9 
1.9 


9.1 
12.3 
11.3 
10.3 
10.8 
10.0 


.034 
.034 
.025 
.026 
.034 
.051 


.15 


December 


.16 


January 


13 


February. . . 


.13 


March 


.19 


April .... 


27 






Winter 


2.73 


55.0 


53.6 


61.9 


.50.1 


2.1 


10.3 


.034 


.17 




2.67 


100.0 


100.0 


100.0 


87.5 


2.15 


■ 10.35 


.079 


.375 






1919-20. 
Mav 


2.87 
2.31 
2.40 
2.62 
2.89 
3.5S 


9.6 
8.6 
7.9 
6.9 
6.7 
6.7 


10.3 
11.4 
10.2 
8.1 
7.1 
5.7 


7.2 
7.3 
5.8 
4.7 
4.6 
7.1 


7.0 
7.1 
5.6 
4.5 
4.4 
6.9 


1.5 
1.4 
1.4 
1.7 
1.8 
2.2 


8.6 
9.1 
7.9 
7.3 
7.2 
7.7 


.04 
.01 
.02 
.02 
.02 
.11 


21 


June 


.09 


July 


.11 


August. 


10 


September 


.08 




.40 






Summer 


2.70 


46.4 


52.8 


.36.7 


35.5 


1.6 


8.0 


.03 


.15 


November 


3.69 
3.74 
3. .59 
3.43 
.3.36 
3.15 


7.1 
8.7 
9.9 
9.2 
9.6 
9.1 


.5.9 
7.1 

8.4 
8.2 
8.8 
8.8 


8.2 
12.1 
12.3 
12.2 
10.0 

8.5 


6.0 
9.9 
10.0 
10.0 
7.8 
6.3 


2.1 
1.9 
2.0 
2.0 
1.8 
1.5 


7.7 
8.4 
10.6 
9.5 
9.5 
7.8 


.11 
.10 
.19 
.09 
.06 
.08 


.39 


December. ... 


.47 


January 


.98 


February 


.43 


March 


.31 


April . . 


.39 






Winter 


3.47 


■ 53.6 


47.2 


6.3.3 


50.0 


1.9 


8.9 


.10 


.49 


Year 


3.06 


100.0 


100.0 


100.0 


85.5 


1.75 


8.45 


.065 


.32 







The third column of Table 11 shows the percentage of the yearly 
income from milk which was obtained each month. The percentage 
of the yearly quantity of milk produced each month is found in the 
fourth column. The fifth column shows the monthly feed, pasture, 
and bedding cost to produce milk, and the sixth shows the same costs 
after the credit for manure and bedding has been deducted. The 
remaining columns show the amounts of labor expended for producing 
100 pounds of milk, and also for keeping a cow. 

SUMMARY. 

The requirements for producing 100 pounds of milk were obtained 
from records covering two one-year periods with an interval of one 
year between them. During the winter six months these require- 
ments were: Concentrates, 41.2 pounds; hauling and grinding con- 
centrates, $0,016; dry roughage, 95.3 pounds; silage and other 



16 BULLETIN &72, U. S. DEPARTMENT OF AGRICULTURE. 

succulent roughage, 93.6 pounds; pasture, $0,108; bedding, 11.1 
pounds; human labor, 2 hours; horse labor, 0.06 hour; total other 
costs except depreciation on cows, $0,788; depreciation on cows, 
$0,081. During the summer six months there were required: Con- 
centrates, 11 pounds; hauling and grinding concentrates, $0,004; 
dry roughage, 51.2 pounds; silage and other succulent roughage, 
29.3 pounds; pasture, $0,653; bedding, 0.5 pound; human labor, 
1.9 hours; horse labor, 0.08 hour; total other costs except deprecia- 
tion on cows, $0,805; depreciation on cows, $0,084. (Table 1.) 

The requirements for keeping a cow one year were: Concentrates, 
1,529 pounds; hauling and grinding concentrates, $0.60; dry rough- 
age, 4,275 pounds; silage and other succulent roughage, 3,593 pounds; 
pasture, $22.01; bedding, 340 pounds; human labor, 113.6 hours; 
horse labor, 3.2 hours; total other costs except depreciation on cows, 
$46.35; deprticiation on cows $4.78. (Table 2.) 

There was a credit, per year, of 0.93 of 1 calf for each cow, which 
amounted to 0.03 of 1 calf for each 100 pounds of milk produced. 
(Table 3.) The credit for manure per cow per year amounted to 7,749 
pounds, and for 100 pounds of milk it amounted to 264 pounds. 
(Table 4.) It was estimated that a ton of this manure contained 9.5 
pounds of nitrogen, 2.9 pounds of phosphoric acid, and 9.8 pounds 
of potash. (Page 8.) 

In the winter season 54.3 per cent of the work was performed by the 
manager, 26.4 per cent by the hired men, 12.9 per cent by women, and 
6.4 per cent by boys and girls. During the summer 51.1 per cent was 
performed by the manager, 21.1 per cent by hired men, 16.8 per cent 
by women, and 11 per cent by boys and girls. (Table 6.) 

The building costs for the year were 13.8 per cent of the capital 
invested in them, the equipment costs were 22.9 per cent of the capital 
invested in equipment, and herd charges were 10.4 per cent of the capi- 
tal invested in the herd. The combined cost of buildings, equipment, 
and herd was 12.6 per cent of the total capital invested in them. 
(Table 8.) 

Fifty-six per cent of the cost of milk was due to feed, bedding, and 
pasture, 16.8 per cent to labor, 2.6 per cent to depreciation on cows, 
and 24.6 per cent to other costs. There was a credit of 6.2 per cent 
for calves and 7.4 per cent for manure. (Table 9.) 

The average incomes from milk during the first winter and summer 
were not sufficient to meet the average costs during those seasons. 
In the second year the incomes were above the average costs in both 
seasons. (Table 10.) 

The greater percentage of the year's income was received in the 
winter, but the feed, pasture, and bedding costs were heavier at this 
time and exceeded the summer costs by a greater percentage than the 
winter receipts exceeded the summer receipts. (Table 11.) 

WASHINGTON : GOVERNMENT FEINTING OFFICE : 1921 



LIBRARY OF CONGRESS 

'"I ''1 1 1' |!||l!:! P||i'|j||i |i»| ijiin 



002 859 



97 4 % 



